KUALA LUMPUR: Calls have been made for the government to establish a clear timeline for foreign companies planning to conduct business within the country.
Former Second Finance Minister, Datuk Seri Johari Ghani, emphasised the necessity of this action to prevent foreign firms from delaying their operations in a manner that might render them incompatible with prevailing conditions or the tax system.
"When we give them approval, we also give them the incentives. I think we must put a time frame when they should start.
"Once they have the groundbreaking ceremony and start with the construction, which sometimes will take four years, it is okay and considered done.
"But, they cannot hold on to our approval and say they will only start in 2026 or 2027. The problem is our tax incentive may have changed by then.
"So, for every incentive that we want to give, we must be very definitive about it. How much and when you must come, so that it will be more effective.
"From my experience, many come with approval letters dated some four years ago, and our system has already changed.
"When we continue to give them the incentives, domestic direct investment (DDI) investors will complain about it, why they did not get the same treatment," said Johari, also the Titiwangsa member of the parliament.
Johari said the state governments must play their roles to ensure that foreign direct investments (FDIs) in their respective states are realised.
"It is essential to monitor from the signing of the memorandum of understanding (MoU) to approval and its implementation.
"We have members of parliament (MPs) from various states, and we need the state governments to play their roles in this matter.
"When people come to invest RM200 billion or RM163 billion, the more reason we must focus on it (its implementation from the MoU signing).
"Of course, these FDIs have an immediate effect on the country's economy as it is direct foreign capital, unlike DDIs," he said.
Johari said this during the winding-up session of the Investment, Trade and Industry Ministry by Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Earlier, Johari raised that only RM9.8 billion approved FDIs have been realised in the first half of this year, compared to the RM63.3 billion approved.
"In 2021 and 2022, we approved FDI amounting to RM208 billion and RM163 billion, respectively.
"It is unfortunate that in the first half of this year, only RM9.8 billion has been realised. What is the issue for us to realise it?" he asked.
